Tuesday, September 10, 2019



Fundamental Highlights

US indices ended mixed on Monday as the Dow traded 0.14% higher while its counterparts turned lower. Today the US publishes Jolt job openings which is likely to garner attention and impact price action as it follows the most recent payroll reports which showed employment is slowing in the US. On global trade, market participants should remain cautiously optimistic about the prospect of resumed US-China trade negotiations as there have been no fundamental changes. This leaves upbeat market sentiment susceptible to any negative change in recent trade developments. Markets can expect economic data to provide further clues on future monetary policy and geopolitical updates to influence market sentiment.

Technical Analysis

The Dow recorded its 4th consecutive gain as it added 38 points to end at 26835 on Monday. The price traded above Friday’s high at 26866 and shy of the resistance level at 26920 as it remained supported by the 20-period MA. The RSI reading eased off the overbought territory and it seems that bullish momentum is exhausted as price barely overcame the recorded highs from the previous sessions. Today, look for a break above 26920 to target the resistance at 27000. Failure to trade above 26920 should maintain selling pressure while trading below the 20-period MA at 26780 could lead to a short-term pull-back where support can be found at 26685 followed by 26550.

Support: 26685/ 26550
Resistance: 26920/ 27000

Chart (H4)